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Boeing Co.’s 737 Max deliveries for the year will be at the “low end” of guidance, a top executive at the aerospace and defense company said Thursday, leading the company’s stock to waver between gains and losses in midday trading.
Previously disclosed problems with some of Boeing’s
BA,
737 Max jets will affect about 165 of the planes in inventory as of the end of the second quarter, Chief Financial Officer Brian West said Thursday. He was speaking at a conference with industrial-sector companies hosted by Jefferies.
See also: Boeing’s 737 Max sales to China is a ‘significant positive’ for jet maker
In the near term, “it will impact deliveries, but we have no intention of changing the master schedule,” West said, according to a transcript by AlphaSense.
Boeing’s demand is “strong,” and the deliveries schedule for the Max planes is not changing. Boeing expects to deliver 400 to 450 of the 737 Max jets this year, and it expects that number will fall at the “low end” of the guidance, he said.
“We’ve got literally armies of people from Boeing and and the supplier working on this issue and to drive stability in their factory,” West said. The delays are “frustrating” to customers, investors and employees, but Boeing is being transparent and will be “stronger for that,” he added.
West also reaffirmed Boeing’s free cash flow guidance for the year of $3 billion to $5 billion.
Boeing shares have gained 14% so far this year, compared with an advance of about 17% for the S&P 500
SPX.
Don’t miss: Boeing’s worst has passed, and there’s plenty of demand
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